Protect home appliances & Systems with a Home Warranty

A home warranty policy provides coverage for the major appliances and systems in your home. It comes into effect when a covered item fails due to general wear and tear. The company sends out a service technician to diagnose and resolve the problem, and in cases where repair seems unlikely, a replacement is provided. The cost of a home warranty is less than the amount you’d have to pay in case of an unexpected breakdown.

You can never be too prepared to care for home emergencies and therefore maintaining a DIY repair fund alongside a home warranty is a good idea. There are some parts that home warranty companies don’t cover. Alternatively, if you want a replacement with an upgraded model, the company may not cover that. A DIY Repair fund can come in handy for other home improvement activities as well.

Over the years, the actions of a few dishonest companies have led to home warranties being labeled as scams. Home warranties, as a premise, may come across as ‘too good to be true’ initially and raise doubts that they are a form of fraud. The idea that a policy provides comprehensive coverage to the appliances and systems in your home is generous and may seem suspicious to some.

There are, however, many leading home warranties in the market that have millions of satisfied customers, high business ratings, and positive reviews - a testament to their legitimacy. However, it's not possible for any product or service to have only positive reviews and home warranty companies do receive flak when they disappoint.

A common problem seen is lack of research and not reading the home warranty contract carefully. Some sales agents may be in a hurry to close the deal making the customer oversee the nuances of the contract. Taking your own time to read it and understand every clause is essential.

Home warranties are, first and foremost, service agreements that offer repair and replacement services to the covered items in your home in lieu of a small fee. As such, companies offering these services abide by all the terms and conditions laid down in your contract.

There are a few instances where your claim can be denied. The most common cause for claim denial is when someone files to get an uncovered item repaired. Another reason may be that the item’s breakdown was due to the failure of a component that is not covered by the home warranty company.

You can increase your chances of a successful claim by getting a home inspection. You should also carefully review the home warranty policy to understand the coverage extent and other necessary details.

The average cost of a home warranty policy is usually $350-$700 per annum. The monthly cost ranges from $30-$75. Apart from the annual or monthly payment, you need to pay a small deductible to your service technician when he comes to fix the issue. This amount may be $50-$200. Some companies offer multiple deductible options.

Compare home warranty costs with the repair or replacement of the appliances and systems in your home, and you’ll realize that hiring independent contractors for services can run into thousands of dollars.